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on China |
| By: | Fu, Tong |
| Abstract: | The existing literature suggests that economic institutions determine the allocation of resources for economic growth. As an important counterexample, although China has one of the world's fastest-growing economies, its legal and financial systems are underdeveloped. With evidence from China, the author confirms that government intervention positively and causally determines firms' access to credit. He further provides evidence that government intervention enables firms' profit through facilitating access to credit. This evidence confirms that the mechanism of government intervention allows firms' access to credit and then enables the firms to obtain relatively large profit. Ultimately, this paper reveals that, in the absence of effective economic institutions, government intervention channels the allocation of capital. |
| Keywords: | access to credit,government intervention,mediation effect |
| JEL: | O17 G21 G28 C51 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201735&r=cna |
| By: | Cappelletti, Alessandra |
| Abstract: | The aim of this paper is to unveil the main cultural patterns adopted by the Chinese leadership to project smart power abroad, and to provide a new perspective on the claims by Chinese scholars and politicians who argue that a new paradigm in international relations is being promoted by Beijing. Principles as "inclusiveness", "in-win cooperation", "peaceful rise", "harmonious world" - often raised in relation with China's vision for a new global order and its flagship policy, the Belt and Road Initiative (BRI) - are part of a new narrative which cannot replace, for instance, fundamental issues as a clear regulatory framework needed for enterprises willing to participate in BRI-related infrastructural and energy projects. The lack of a clear legal framework is at the moment one of the most important problem hindering foreign firms' ability to invest and grow within the China-led initiative. The importance of this study rests on the necessity to find new interpretative insights to understand the main driving forces behind China's foreign policy (often not complying with Western-set rules and practices) by assessing the role of Chinese classical culture in the projection of China's smart power. The main cultural patterns and perspectives guiding Chinese policies abroad; the possibility that the Chinese government is introducing a narrative shift in global policy practices; the surfacing of a possible new way for international relations consistently based on an effort to improve international relations and enhance the state of world affairs, or maybe simply of a strategic scheme meant to avoid creating a clearer framework which could guarantee access to the initiative to all interested parts, at the same time limiting Beijing's power to arbitrarily choose partners and directions, will all be objects of reflection. |
| Keywords: | cultural diplomacy,soft power,smart power,Chinese politics,knowledge construction,cultural narratives,identity |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:udedao:1152017&r=cna |
| By: | Xianfeng Jiang; Frank Packer |
| Abstract: | The market for the credit ratings of Chinese firms is large and growing. We focus our analysis on the firms that have ratings from both domestic and global agencies. Despite the similar symbols, the rating scales of the domestic and global agencies differ: domestic agencies rate firms that are jointly rated higher than global agencies by 6-7 notches on average. Focusing on the rank order of domestic and global credit ratings, we test for differences in the determinants of ratings across global and domestic agencies. We find asset size is weighed more heavily as a positive factor by domestic agencies, and leverage is weighed more heavily as a negative factor by global agencies. Profitability and state-ownership are weighed more positively by global rating agencies. The influence of the variables is generally stable across a variety of robustness checks. In spite of these differences, both domestic and global ratings appear to be priced into the market values of rated bonds. |
| Keywords: | credit ratings, split ratings, state-owned firms, Chinese bond markets |
| JEL: | G12 G18 G23 G24 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:648&r=cna |
| By: | Reinhilde Veugelers |
| Abstract: | China is building up its global competitiveness in knowledge-intensive sectors and its ambition to be a global leader in science and innovation by 2050 seems well within reach. China outperforms the European Union in terms of expenditure on research and development as a share of its GDP, and already produces about the same number of scientific publications, and more PhDs in natural sciences and engineering, than the United States. China aspires to produce and capitalise on home-grown scientific talent, but its growth model for science still involves sending out its increasingly better locally-trained scholars to the best institutes in the world and reaping the benefits when they return in the later stages of their careers, after they have fully developed their capabilities and built their networks. The US remains the favoured destination for Chinese students, which has led to the creation of US-Chinese science and technology networks and connections that are mutually beneficial - enabling China to catch up and helping the US to keep its position at the science frontier. The EU has much less-developed scientific connections to China than the US. The EU should take steps to engage more with China if it is not to miss out in the future multipolar science and technology world. |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:21154&r=cna |
| By: | Stephen Gibbons; Wenjie Wu |
| Abstract: | China's airport construction policy has been successful in boosting manufacturing output, according to research by Stephen Gibbons and Wenjie Wu. Their study also finds that productivity impacts have been greater for private firms in areas with relatively high population and low educational achievement. The researchers address the question of whether opening new airports and expanding airport capacity stimulate economic growth, particularly in developing countries. The evidence they find on the positive impact of airport infrastructure in China suggests that reduced travel times and improved domestic market access help to boost industrial productivity. |
| Keywords: | airports, infrastructure, productivity, China |
| JEL: | H54 O21 P25 R41 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:509&r=cna |